Binance.US Gets Court Approval to Invest Customer Assets in US Treasury Bills

Judge Amy Berman Jackson of the US District Court for the District of Columbia signed an order on Friday that frees Binance.US from restrictions enforced by the US Securities and Exchange Commission (SEC).

Binance.US has reportedly gained approval from a US judge to invest customer assets in US Treasury bills. The crypto will be transferred from Binance to a third-party custodian. Binance.US operator BAM will be able to invest certain customer fiat funds that are custodized at BitGo in US Treasury bills that mature on a rolling four-week basis.

This move comes after Judge Amy Berman Jackson of the US District Court for the District of Columbia earlier this month ruled that crypto and secondary sales of Binance’s BNB token are not securities, dismissing claims by the SEC.

The SEC had previously claimed that 68 cryptocurrencies are securities. BNB and nine other cryptocurrencies were added to the list in June 2023 during its lawsuits against Binance and Coinbase for alleged securities violations.

However, Jackson ruled that the regulator failed to prove how secondary buyers of BNB purchased the tokens with the expectation of profits rather than for utility.

“The court held that the SEC failed to plead that purchasers in secondary market sales acquired BNB with an expectation of profits, rather than for other uses, which is a key criterion for passing the Howey test (a legal framework outlined by the Supreme Court to determine whether a transaction qualifies as an investment contract),” Jackson stated.

The above is the detailed content of Binance.US Gets Court Approval to Invest Customer Assets in US Treasury Bills. For more information, please follow other related articles on the PHP Chinese website!